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ByteDance is shutting down TikTok Music globally

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ByteDance is shutting down TikTok Music globally
  • ByteDance is closing its music streaming service, TikTok Music, effective November 28, due to intense competition from established streaming services and high music royalty fees.
  • The strategic shift focuses on TikTok's 'Add To Music App' feature, which allows users to save music tracks from TikTok to preferred streaming services, aligning with its goal to benefit the music industry.
  • Users in regions where TikTok Music was available need to transfer their playlists to other services and request refunds if necessary, as ByteDance continues to promote music discovery and support through its video platform and other initiatives.

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The End of an Era: TikTok Music Closes Its Doors

In a move that signals a shift in its strategic focus, ByteDance has announced the closure of its music streaming service, TikTok Music, effective November 28. This decision comes as the company continues to navigate the highly competitive music streaming market, where giants like Spotify, Apple Music, and Google’s YouTube Music dominate the scene.

Background and Launch

TikTok Music first launched in Indonesia and Brazil in July 2023, marking ByteDance's latest foray into the music streaming industry. The app quickly expanded to Australia, Singapore, and Mexico, aiming to provide users with a seamless blend of social features and music streaming capabilities. Despite its ambitious launch, the service never made it to the U.S., despite ByteDance filing a trademark application for the name in 2022.

Challenges and Competitions

The decision to shut down TikTok Music can be attributed to several factors. One major challenge the service faced was intense competition from established players in the market. Big tech firms have poured significant resources into their respective music streaming services over the past decade, making it increasingly difficult for newcomers to gain traction. Additionally, high music royalty fees have contributed to slim profit margins, further complicating the landscape.

Strategic Shift

In a statement, Ole Obermann, TikTok’s global head of music business development, explained that the closure is part of a broader strategy to focus on driving greater music listening and value on existing music streaming services. This shift aligns with TikTok’s goal of benefiting artists, songwriters, and the music industry as a whole. By closing TikTok Music, the company aims to concentrate resources on its "Add To Music App" feature, which enables users to save music tracks they discover on the video platform to playlists on preferred streaming services like Spotify, Apple Music, and Amazon Music.

User Impact

The shutdown will affect users in several key regions where TikTok Music was available. Users in Indonesia, Brazil, Australia, Singapore, and Mexico will need to transfer their playlists to other music streaming services by October 28 to avoid losing access to their music collections. Those who have already subscribed to TikTok Music will need to request refunds through their respective platforms (Google Play for Google subscribers and Apple Support for Apple users) before November 28. Once the service closes, all user data and login information will be automatically deleted.

Future Plans

While the closure of TikTok Music marks an end to a four-year experiment by ByteDance in the music streaming arena, it underscores the company’s commitment to music discovery and promotion. TikTok remains a powerhouse in driving viral trends, with over a quarter (27%) of the Top 100 singles in Germany last year going viral on TikTok before becoming hits on the German singles chart. The company continues to build its music ecosystem through initiatives like SoundOn, a song-distribution tool, partnerships with SiriusXM, and close collaborations with major artists on song and album promotions.

Conclusion

The shutdown of TikTok Music highlights the evolving strategies of tech giants in the digital music landscape. As companies like Spotify and Apple Music continue to dominate the market, platforms like TikTok are re-evaluating their roles in music streaming. By focusing on its "Add To Music App" feature, TikTok aims to remain a significant player in music discovery and support the music industry, even as it exits the direct competition in music streaming.


References https://www.scmp.com/tech/big-tech/article/3279801/tiktok-close-music-streaming-business-november-amid-tough-competition https://www.axios.com/pro/media-deals/2024/09/24/tiktok-music-shut-down https://www.musicbusinessworldwide.com/tiktok-to-shutter-music-subscription-service-tiktok-music-in-november/ https://www.engadget.com/apps/tiktok-music-is-on-its-way-out-143058957.html https://www.businessinsider.com/tiktok-abandoning-plan-to-challenge-spotify-apple-in-music-streaming-2024-9